The Quanzhou Municipal Finance Bureau and the Municipal Financial Supervision Authority recently released the Implementation Plan for the Comprehensive Financial Service Reform for Private SMEs in Quanzhou to further improve the efficiency of local government services. 

Officials of the finance bureau said that the document aims to highlight the role of financial funds from the government in guiding business activities, and stimulate the development of the local private economy. 

To meet the diverse financial needs of private SMEs (small and medium-sized enterprises) and promote innovation in financial institutions, the plan proposes monetary rewards for innovative financial products and projects. 

Awards for originally developed products and innovative applications will be set up to encourage financial institutions to conduct independent research and development in areas involved in Quanzhou industrial clusters. 

It also pioneered the development of innovative financial products in the Quanzhou market.

The plan proposes that financial institutions in the city that increase their credit allocation to SMEs will receive financial rewards. 

When the increase in loans to SMEs is more than 1 billion yuan ($145 million), the financial institution will be granted a reward of 100,000 yuan, while an increase in loans to SMEs of 300 million yuan or more will earn a reward of 50,000 yuan. 

The city will expand the scale of fiscal funds and State-owned capital centering around key areas such as private enterprise financing, and industrial transformation and upgrading. 

It will also set up a new investment fund of 1 billion yuan for innovation and entrepreneurship, focusing on science and technology, emerging industries and intelligent manufacturing. 

Listed companies are encouraged to further strengthen their main businesses through refinancing and acquisitions. Enterprises that have successfully issued stocks, preferred stocks, convertible bonds, and other types of bonds will be awarded 1 percent of the actual funds raised during the process. 

In addition, the municipal government has set up a business guarantee loan fund to provide entrepreneurial financing guarantees for people with employment difficulties, college graduates, and online merchants, as well as self-employed farmers in rural areas.